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Restaurant industry employment is still slow to recover

The foodservice industry added 41,000 jobs last month, but employment in the hospitality industry employment is still down overall from pre-pandemic

Joanna Fantozzi, Senior Editor

July 8, 2022

2 Min Read
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The hospitality and entertainment industry has still been one of the slowest industries to recover from the employment downturn as job numbers are still down 7.8% since Feb. 2020, right before the COVID-19 pandemic hit.Drew Angerer/Getty Images News/Getty Images

Joanna Fantozzi

The restaurant industry’s employment numbers are still slowly recovering from the COVID-19 pandemic, with food and beverage businesses adding 41,000 jobs in June, according to the latest Bureau of Labor Statistics report.

However, the hospitality and entertainment industry has still been one of the slowest industries to recover from the employment downturn as job numbers are still down 7.8% since Feb. 2020, right before the COVID-19 pandemic hit. The overall U.S. unemployment rate remained unchanged from last month at 3.6%.

As restaurants still struggle to maintain staffing and prevent high turnover rates, the good news is that hospitality industry unemployment rates have halved on a year-over-year basis. From June 2021 to June 2022, the hospitality unemployment rate fell from 10.9% to 5.2%.

Overall, while the restaurant industry’s job numbers continue to improve, the recovery is still very slow. Since June 2021, the number of workers employed by the foodservice industry grew 8.9%, and since June 2020, grew 27%, but has not reached the job levels of pre-2020 numbers as workers continue to leave the foodservice industry. As of June 2022, there are 11,938,000 workers employed by the foodservice industry.

As the hospitality industry continues to struggle with employment rates, non-franchised operators have woken up to union labor movements in their stores, like the major unionization movement that has taken over Starbucks.

Related:More restaurant employees are quitting than in any other industry, recent data shows

Restaurants are using multiple tactics to solve the slow return to work, including higher minimum wages and flexible scheduling.  

“There is no silver bullet, one answer for everybody,” Rona Lascano, director of training at A&W Restaurants told Nation’s Restaurant News in May. “[…] What we can influence is what the labor force today is looking for and how the expectations have changed and really shifting toward a more team-member-centric approach to recruiting and retention.”

Contact Joanna Fantozzi at [email protected]

Follow her on Twitter: @JoannaFantozzi

About the Author

Joanna Fantozzi

Senior Editor

Joanna Fantozzi is a Senior Editor for Nation’s Restaurant News and Restaurant Hospitality. She has more than seven years of experience writing about the restaurant and hospitality industry. Her editorial coverage ranges from profiles of independent restaurants around the country to breaking news and insights into some of the biggest brands in food and beverage, including Starbucks, Domino’s, and Papa John’s.  

Joanna holds a bachelor’s degree in English literature and creative writing from The College of New Jersey and a master’s degree in arts and culture journalism from the Craig Newmark Graduate School of Journalism at CUNY. Prior to joining Informa’s Restaurants and Food Group in 2018, she was a freelance food, culture, and lifestyle writer, and has previously held editorial positions at Insider (formerly known as Business Insider) and The Daily Meal. Joanna’s work can also be found in The New York Times, Forbes, Vice, The New York Daily News, and Parents Magazine. 

Her areas of expertise include restaurant industry news, restaurant operator solutions and innovations, and political/cultural issues.

Joanna Fantozzi has been a moderator and event facilitator at both Informa’s MUFSO and Restaurants Rise industry events. 

Joanna Fantozzi’s experience:

Senior Editor, Informa Restaurant & Food Group (August 2021-present)

Associate Editor, Informa Restaurant & Food Group (July 2019-August 2021)

Assistant Editor, Informa Restaurant & Food Group (Oct. 2018-July 2019)

Freelance Food & Lifestyle Reporter (Feb. 2018-Oct. 2018)

Food & Lifestyle Reporter, Insider (June 2017-Feb. 2018)

News Editor, The Daily Meal (Jan. 2014- June 2017)

Staff Reporter, Straus News (Jan. 2013-Dec. 2013)

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